Sub Sale Vs Under Constructions Property – Which To Choose?
Table of Contents
- 1 Under Construction Property
- 2 Sub sale property
- 3 Final thoughts
Whether you are a property investor, a first timer, or second timer, the process of buying a property can be a very stressful experience. Whether it’s for investment purposes or personal use, the property purchase is still one of the biggest investments that you can make in your life.
To avoid making any mistakes, it requires homework and thorough research. The first question you’d ask yourself is whether you should get a sub sale one or one under construction. Whichever property you choose, you must do enough background research to ensure that you buy the best.
Here are some of the considerations that you need to think about.
Under Construction Property
Mostly favored by the Malaysian market, this is where developers start selling the property even before the construction work begins. Buyers would, therefore, cross their fingers and hope for the best. If everything goes on well they’ll get a perfect unit. These properties are popular among the buyers because they come with several freebies and discounts.
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Buying it when it’s still under construction means that you are buying it cheaper. Once it’s completed it will naturally cost more. In addition, the value is also likely to go up due to inflation.
Since you are a first owner everything in the unit is brand new. By knowing this, you’ll have a peace mind
Since the projects are showcased at property launches and fairs, it’s very easy to get information. You can just walk into the showroom or developer’s offices and easily identify the property.
Any brand new property usually comes with heaps of discounts. This is because the aim of the developer is to sell all the units.
Most brand new properties come with a standard 18-month defect warranty. Within this period, the developer should be able to rectify any defects in the bathroom leakage, units, and others that are not installed properly.
Since you are purchasing the property based on models and plans, its quality is not guaranteed.
When you buy such a property you’ll have to wait for some time until it’s completed.
You need to know that not all things such as electronics and furniture will come with the purchase. You should, therefore, clarify the items that should be included. You also need to consider costs such as stamp duties, loan application processing fees, initial deposit fee, utility deposit, and legal fees.
Sub sale property
This is the kind of property that you purchase from the original owner in an open market. Before purchasing such a property, you need to verify that the seller is the original owner of the house. By investing in such properties, investors actually know what they’re getting.
You get the real thing- In this kind of purchase, you get a feel of what you’re buying. Every single detail including view, finishing and units are laid out well.
No risks or delays
Since the property is already there, there are no delays. Once all the paperwork is completed you are free to move in.
When you purchase sub-sale property, you can rent it out immediately and start earning some money.
Fewer potential properties
Searching for such properties generally involves more work
Between the negotiation period to the time of settling the deal the seller could easily change his mind and sell the property or increase the price.
Buying the property cheaply does not mean that you are buying a good thing sometimes the seller is just keen to get rid of the property.
If you are buying sub sale property it means you will have to spend more money upfront. This is because you’ll have more things to cover such as
·Valuation costs and fees.
·Loan application processing.
·Renovation and repair costs.
·10% initial deposit
Whichever property that you decide to purchase you must do enough background research to ensure you do not buy an expensive or one that you’ll have a hard time reselling or renting out.